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11.28.2016

FEDERAL JUDGE TEMPORARILY HALTS NEW OVERTIME RULE

Dear Clients and Friends:

Last week a federal judge issued a nationwide preliminary injunction prohibiting the US Department of Labor from enforcing the new overtime exemption regulations that were going in effect on December 1, 2016. The current Fair Employment Labor Standards Act (FLSA) exempt salary threshold of $23,660 would have been raised to $47,476 and would have dramatically expanded eligibility thresholds for exempt employee classifications.

At this time, the new regulations are on hold as this ruling is temporary and the final outcome could depend on a number of factors, including the federal judge’s final ruling in the case, a potential Department of Labor appeal and the stance that President-elect Donald Trump’s administration will take on wage and hour issues. At this point it is too early to tell whether the new regulations will ever go into effect but we will keep you posted.

Please feel free to contact us should you have any questions or concerns.

Varner & Brandt LLP

vb@varnerbrandt.com

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